How does severability of insurance apply when multiple people are insured under the same policy?

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Severability of insurance is a principle that means each insured party under the policy is treated as an individual, regardless of the actions or conditions that may apply to the others covered by the same policy. This concept supports the idea that even if one insured party violates a condition of the policy or is involved in an act that would otherwise negate coverage, the other parties are still afforded protection under the same policy.

Under this principle, each person named as an insured or covered under the policy can potentially receive separate and distinct coverage. This can be critical in situations where claims are made by or against multiple insureds, ensuring that one party's issues do not impact the coverage available to others.

Understanding how severability works is important for adjusters, as it directly influences how claims are processed and handled when multiple individuals are covered under a single policy. This ensures that each insured maintains their own rights and benefits as stipulated in the insurance contract, leading to a fair and independent assessment of coverage for each individual.

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